Rappi, Mercado Pago among 60 fintechs waiting for license in Mexico
Mexico’s regulator is expected to speed up authorizations for fintech operating licenses this year, with some 60 new companies seen having a good chance of receiving a permit, fueling expectations for faster growth in the sector.
Since Mexico’s fintech law was passed in 2018, about 100 startups have asked the National Banking and Securities Commission (CNBV) for permission to operate
but only 24 have received its blessing. Mexico’s Fintech Association expects the regulator to move forward with dozens more in the coming months.
“It’s completely viable […] Even so, the challenge goes beyond obtaining authorization—the challenge is to maintain it,” Rebeca Álvarez, a fintech specialist and managing partner at law firm Loxical, told iupana.
Among the firms waiting for a license are Rappi and Mercado Pago, which are allowed to operate under the fintech law but don’t yet have firm permits, she said. Requests from a further 40 businesses have been turned down by the regulator but the firms are able reapply, she added.
Compliance with the law has been—and will probably
remain—a challenge in Mexico. Companies must demonstrate financial viability for three years and present a stable business model, whereas many startups are in constant flux.
“It’s been four years since the fintech law was enacted: the models have changed. The secondary provisions of this law must be modified appropriately. In addition, we should consider creating regulations for sandbox models and virtual assets,” Álvarez said.